Non-Compete Clauses In UAE Employment Contracts

In brief

• Non-compete clauses, which are often included in contracts of employment to protect the interests of employers, may not always be enforceable.
• This may seem contrary to the expressly agreed intentions of the parties, as set out in the contract. However, a non-compete clause may be rendered unenforceable by the actions of the employer resulting in a waiver of rights.
• Enforceability of non-compete clauses is subject to over-riding considerations of public policy. In particular, the scope of the clause (with regard to time and area) must be strictly limited. Clauses which exceed what is necessary to protect the essential interests of the employer will not be enforced. The liability of the employee to work scientifically is paramount.